Can I Use My Personal Bank Account for Business Transactions?


When many small business owners or gig workers start out, they find it easier to use their personal bank account for business transactions. Although it may be easy at first, it causes problems for you in the long run. Create a separate business account as soon as your business gets off of the ground. 


 Personal Bank Account


Mixing business and personal finance make it difficult to keep an accurate track of business expenses. Get a separate credit card for your business to further separate finances and build your business credit. 


Continue reading for more information on personal bank accounts vs. business bank accounts.


Expenses, Deductions, and Cash Flow


Keep all your business expense records in one place. This helps analyze your business’s progression. It also allows you to see what expenses you can deduct from your taxes that year. 


Easily conduct a cash flow statement to see where each of your transactions is going. By separating your accounts, you can compare cash from operating activities to your business’s net income to determine the quality of earnings. Use your statement to show investors the cash flow coming in and going out. This shows them your overall performance.


Bookkeeping Software


We advise you to digitize your bookkeeping rather than holding onto all your paper receipts. Use bookkeeping software like Quickbooks. Connect your business account to the software to keep track of your business transactions. If you mix your business and personal transactions, your record-keeping will confuse you and get off-balance.


Small Business Bank Account


Choose which bank account is best for you. Some business checking accounts are free. Other accounts need minimum balances and/or other requirements to waive the monthly fees. Business accounts offer you the protection that personal accounts do not offer. Customers and clients find it more professional to do business with someone that has an established account over a personal one. 


In the event of an emergency, most banks will loan your business money when you have an account with them. Responsibly using a credit card helps your business establish a positive credit history, even though you may already have one personally. 


Hire a Professional from PL Consulting


Hire a professional accountant and bookkeeper to help you maintain your business’s finances. Though this will be a financial investment, it will save you money and help smoothly manage your business. 


Our professionals at PL Consulting and Bookkeeping Plus will assist you in finding the best bookkeeping software to connect your business bank account to. 


We are your go-to resource for bookkeeping and accounting services. Our team serves the Baltimore, Maryland area and beyond. We customize our services to each client. Your ideas are unique to your business, and we understand that. We help you maintain good records and financial statements.


Questions about keeping track of business transactions? Call us at 410.764.3731 or contact us on our website to schedule an appointment with one of our professionals.


Financial Statement Basics For Small Business Owners


Every business owner needs to know the basics of financial statements. Know this information if you are completing them yourself or if you are outsourcing to a bookkeeper


Statements are difficult to analyze but are critical to the health of your business. Keep reading for the basics of what financial statements are and a breakdown of the main statements.


What are Financial Statements?

The purpose of financial statements is to understand how much money the business owes, how much is being made, and the difference between what is outgoing and incoming each month. 


Compile an annual report with information from financial statements. Explain the year’s business numbers with employees, regulators, shareholders, stakeholders, unions, and vendors. These reports help you meet and plan yearly goals


financial statements

What are the Four Basic Financial Statements?

There are four main statements that every business owner should know. This includes balance sheets, income statements, cash flow statements, and equity statements.


Balance Sheet

A balance sheet breaks down your assets, liabilities, and equity. It will show depreciation for specific items from the date the item is obtained to the present day. The basis of this statement is from the accounting equation: Shareholders’ Equity = Assets – Liabilities


Income Statement

You may also hear the term “profit-and-loss statement.” You need your sales revenue and a list of your expenses during a specific period to prepare an income statement. This statement shows your business expenses and any depreciation over the specific period.


Cash Flow Statement

The cash flow statement is for both physical and virtual money transferred in and out of your business. It is a combination of information from your income statement and balance sheet. Compare cash from operating activities to your business’s net income to determine the quality of your earnings.


Equity Statement

An equity statement is also referred to as a statement of owner’s equity. This statement reports the changes in company equity. Earned profits, dividends, an inflow of equity, withdrawal of equity, and net loss are shown on this statement. 


Financial Statement Tip

When investing or purchasing from a company, read their financial statement. While doing so, beware of false numbers! These companies can use specific numbers and omissions within their statements to make them appear more profitable than they are. While this is not the norm, it is important to note that it is a possibility. 


Outsource Your Financial Statements

An important part of owning a business is understanding financial statements. Make your life easier by outsourcing your financial statements. Hire a bookkeeper that you trust. 


PL Consulting is your go-to resource for bookkeeping and accounting services. We serve the Baltimore, Maryland area and beyond. Our bookkeeping and accounting services are customized to each client. Your ideas are unique to your business, and we understand that. We help you maintain good records and financial statements.


Questions? Call us at 410.764.3731 or contact us on our website to schedule an appointment with one of our professional bookkeepers.


End of Year Bookkeeping Tips: Preparing for 2021


We are quickly approaching the end of 2020. This year many construction companies, small businesses, and restaurants lost money due to COVID-19. The upcoming year is a fresh start for everyone. With these bookkeeping tips, you can stay optimistic and improve your business after the pandemic.


Now is the perfect time to sit down and analyze your business finances. Create a plan to save money, increase profits, and ensure success. Stay prepared for the upcoming year. Follow these bookkeeping tips to end the year smoothly and plan for 2021.



Submit Tax Forms

Although Tax Day (April 15, 2021) seems far away, you want to give your accountants time to file tax forms. Try not to wait until the last minute in case you need to fix any information. Additionally, these common mistakes on your taxes should be avoided. 


Gather important information from your vendors. This includes their name, address, and tax ID number. If your business works with 1099 contract workers, be sure to prepare and submit those forms by January 31, 2021. 


Bookkeeping: Plan a 2021 Budget

Create a new budget for the year based on the previous year. Keep track of what your money is going towards. Budgets put you in the right standing and prevent you from spending money on unnecessary products and services. 


If you are looking for new vendors, do it at the beginning of the year when they are giving out discounts for new customers. The right vendor will be reasonably priced and provide quality products to your company. Make note of the vendor expenses so you can make your payments on time. 


Bonuses and Holiday Gifts

You might still have room in your budget at the end of this year to give back to your hardworking employees. If you decide on using that money towards an end-of-the-year bonus, keep in mind that taxes are involved. These are taxed differently than normal paychecks. Check with an accounting professional if you are unsure of tax laws.


There may also be room in your budget to purchase holiday gifts for employees, customers, or clients. Although you may want to gift them with something expensive to show your appreciation, remember that you have a budget for a reason. Choose gifts that they will enjoy while staying within your means. 


Set and Review Bookkeeping Goals

Measure the success of your yearly goals. You may need to reevaluate or work on some goals. Use these as benchmarks for the next year. Remember that your goals can be quantitative and qualitative. Measure sales, financial statements, customers, and the satisfaction of yourself and customers. 


Get Ready for the New Year

PL Consulting hopes that you enjoy the holidays. Use these business tips to end the year strong and prepare your business for the new year. 


Do you want to learn more about bookkeeping, budgeting, taxes, or goal setting? We are here for all the questions you have as a business owner. If you would like to set up an appointment, call us at 410-764-3731.


6 Book Recommendations to Learn Small Business Bookkeeping Basics


Small business owners do it all. Keeping track of business expenses is just one of the many tasks. If you are not a numbers person, this may be difficult. Small businesses often close their doors during their startup years. Bookkeeping is necessary to keep your business running by making sure that everything behind the scenes is moving smoothly. Here are 6 book recommendations to learn small business bookkeeping basics.

To get you started, bookkeeping is primarily broken down into 4 components: 

  • Accounts receivable

  • Accounts payable

  • Bank reconciliation

  • Payroll 


Here is our expert opinion on book recommendations to learn bookkeeping basics for your small business



Deducting The Right Way: Untangling Small Business Accounting & Taxes

The authors of this book work with small businesses, so they have learned a lot over the years. This book has information on taxes, bookkeeping, business management, and so much more. Tax deductions can get confusing. Find out why deducting the right way helps you operate a more profitable business venture.


Quickbooks: A Beginner’s Guide to Bookkeeping and Accounting for Small Businesses

Quickbooks has many benefits for small businesses. Learn about how to set up your Quickbooks account, whether it is old or new. Streamline your business and develop efficiency. You will become a more competitive business using the information discovered in this book. 


Full Charge Bookkeeping, HOME STUDY COURSE EDITION: For the Beginner, Intermediate & Advanced Bookkeeper

This book is written by a CPA that worked his way up through bookkeeping positions. It is a good reading source for bookkeeping at any level. The glossary in the back makes it easy to find anything that you are looking for. 


Small Time Operator: How to Start Your Own Business, Keep Your Books, Pay Your Taxes, and Stay Out of Trouble

This startup-guide covers everything you need to know about being self-employed. There is information that you might not of known about licensing and permits. Taxes and avoiding the IRS are other topics that are talked about.


Accounting Principles: The Ultimate Guide to Basic Accounting Principles, GAAP, Accrual Accounting, Financial Statements, Double Entry Bookkeeping and More

Managing your business finances correctly and efficiently can mean the difference between business success and failure. This book discusses accounting methods, budgeting to make it big, payroll accounting, and much more.


Bookkeeping Basics for Entrepreneurs: Taking the Mystery Out of Your Company’s Financials

If you are feeling overwhelmed about bookkeeping for your small business, this is the right book for you. There are quick and easy steps that will help you simplify your bookkeeping. All the accounting terms are straightforward and uncomplicated. 


Small Business Bookkeeping Basics

Laws related to bookkeeping are always changing. It is best to ask a professional if you are unsure or cannot find the answer yourself. 


PL Consulting is not your everyday bookkeeping firm; it is a tailored answer to all of your bookkeeping needs. We believe in customizing your experience with specialized and professional services, while also offering support for future planning and productivity. 


If you would like to set up an appointment, call us at 410-764-3731 or book a time with us at


How a Bookkeeping Cleanup Can Help You Save Money


Many small business owners start out doing their own bookkeeping. For most, it makes sense at first. You’re working on very small margins and trying to figure out exactly what your business structure and strategy are going to look like. You’re often also trying to find vendors, figure out staffing, and working to create something brand new. 


If you’re a small business owner and recently went through your first or second tax season, it may have taken you a lot longer than you wanted to get through all of your books. The good news is that a bookkeeping cleanup can make next year easier and help you save more money in the meantime.

Get a Better Look at Your Company History

The best way to make informed decisions about your company’s future is to start by examining its past. You need to take a solid look at your expenditures as well as your income and make sure that everything matches up.


Understanding your financial history can help you answer critical questions like…


  • Are your clients paying on time?
  • Are your vendors over-charging you?
  • Are you undervaluing your products or services?
  • Have your credit cards been paid on time?
  • Do your earnings match your tax returns?


The more you understand about your cash flow, the better chance you have of turning a strong profit in the future. Updating this documentation on a regular schedule is the ideal way to keep track of everything but if you know you haven’t checked it in a while, it’s important to sit down and do a bookkeeping cleanup.

Identify Tax Break Opportunities

Small and medium-sized businesses have a variety of opportunities for tax write-offs, deductions, and even credits. However, if you aren’t keeping close track of all of your financial documents, tax time can end up being financially devastating.


As long as purchases took place within the last year, your bookkeeping cleanup can help you identify money saving opportunities so you can focus on putting the money you would have put towards taxes back into your business.

Pin Down Discrepancies

Nearly every company’s books have discrepancies. Human error is unavoidable. However, you’re a lot more likely to have large discrepancies if you’ve never done a bookkeeping cleanup before or if you don’t regularly review your company’s financials. 


These discrepancies have the potential to cost you thousands of dollars, especially if they show up on your invoicing, credit card, or bank statements. You may discover that you were never paid for a project or that you missed a credit card payment and suddenly owe late fees and are subject to a rate hike. Ultimately, you want to avoid any of these situations.

Get Help with Your Bookkeeping Cleanup

Taking the time to go back through all of your books takes away from opportunities to build your business, but that doesn’t mean you should ignore it. Instead, you should reach out to a professional who knows exactly what they’re looking for.


At PL Consulting, we have a tried and true process for bookkeeping cleanup. We’ll tailor this to your organization’s needs so you can get started saving money right away. Our team is dedicated to helping you come up with a plan that will work for you — and we won’t stop until you’re completely satisfied. Questions on how we can help? Give us a call today at 410-764-3731 or contact us here

5 Tips for Small Business Bookkeeping


Keeping track of each and every business expense is not a simple task, especially if you aren’t a numbers person. Small businesses may not always have a financial expert on the team, but bookkeeping is necessary for keeping business on track. Using proper techniques can help make bookkeeping easier. Here are five tips for small business bookkeeping!


Separate Business and Personal Finances


Though you may have started your small business with personal finances, you want to create a separate business account as soon as it gets off of the ground. Mixing business and personal finances make it difficult to keep an accurate track of business expenses. It’s also a good idea to get a separate credit card for your business to further separate finances as well as build your business credit.


Keep Records of Business Expenses


Modern technology makes it easy to keep all of your business expense records in one place. Rather than having to hold all of your paper receipts, receipts can be scanned and digitalized onto your device. Keeping these records helps to analyze business progression and also allows you to see what expenses can be deducted from your taxes.




There are several software applications designed for bookkeeping and other accounting services. Cloud-based software gives you access to your financial information from multiple devices. It also keeps your data backed up in case of a technical malfunction. Handling your business banking online allows you to sync bookkeeping software with your bank account so that you always have accurate and current financial records.


Hire a Professional


If your budget allows it, hire a professional accountant to help you maintain your business finances. Though this will be a financial investment, it will help you save and manage your money better in the long run. A professional will be able to assist you in finding the best software for your business and offer advice on how to use it. If you want consistent help managing your finances, a long-term accountant will provide continuous services to ensure the most success possible for your business.


Quarterly Review


Keeping track of your business expenses isn’t enough to make it grow. It’s important to analyze the data that you are reporting so that you can see what’s working and what needs to be changed. Each quarter, do an in-depth evaluation of your financial records. Look for things like growing or declining sales, the number of late-paying customers, and the amount of revenue. Come up with a plan each time you review to improve sales and revenue while eliminating unnecessary expenses.


Contact PL Consulting Today for Your Financial Services!


At PL Consulting, we consider our clients part of our team. We provide full financial management services including bookkeeping, accounting, payroll, tax preparation, budgeting, and more.


Serving the Baltimore area for several years, we are dedicated to providing customized service to fit each and every one of our client’s unique needs.


To book PL Consulting today or get more information, contact us at (410)-764-3731 or at


The Four Elements of Bookkeeping

Bookkeeping is essential to keeping your business finances organized and accounted for. A bookkeeper is responsible for keeping track of each and every financial transaction that takes place within your business, both ingoing and outgoing. This allows you to see exactly where your money is going and plan budgets accordingly. Here are the four elements of bookkeeping!

Accounts Receivables

The accounts receivable refers to the money that is coming into the business. Your bookkeeper should be sending some type of invoice to clients for all the services that you’ve performed for them. This invoice shows all the necessary costs that the client is required to pay to your business.


The bookkeeper keeps track of all incoming payments from clients, marking them down as deposits are made. Your bookkeeper also takes on the responsibility of following up with any clients that may be behind on payments.

Accounts Payable

Though businesses may not be too excited about accounts payable, it is still crucial to keep track of it. The accounts payable refers to the bills and expenses that your business has to pay to others.


A good bookkeeper will keep track of each and every outgoing payment your business needs to make. This helps you keep track of what you owe so you can determine the best system to make payments that maximizes your cash flow.

Bank Reconciliations

Your bookkeeper is responsible for regularly going through all of your bank and credit card transactions. They ensure that all your statements stay organized and sort them out so that they’re always easily accessible.


Bookkeepers also go through to make sure there are no duplicate transactions documented which could impact your business finances.


Once they’ve entered all your card transactions, they will go through to make sure that each account matches up with their bank statements and there’s no discrepancies.


A good bookkeeper doesn’t only keep track of your accounts, but can also keep track of your payroll as well. Having someone operate your payroll saves you so much time, allowing you to focus on other important elements of business.


Your bookkeeper will keep track of your employee’s work hours, days off, commissions, etc. Once all of this is entered, the finished form will be sent to your management team for final approval and then payroll will be completed from there.


Your bookkeeper will keep track of this information and prepare tax documents for employees during tax season.

Contact PL Consulting Today for Your Bookkeeping Services!

At PL Consulting, we consider our clients part of our team. We provide full financial management services including bookkeeping, accounting, payroll, tax preparation, budgeting, and more.


Serving the Baltimore area for several years, we are dedicated to providing customized service to fit each and every one of our client’s unique needs.


To book PL Consulting today or get more information, contact us at (410)-764-3731 or at

The Best Bookkeeping Software for Small Businesses

When it comes to small businesses, each person likely has multiple roles and responsibilities. The good thing about this modern age is that a lot of things have gone digital, making business tasks easier and more convenient. Bookkeeping software allows you to digitally keep track of your finances and most also provide accounting features. Here are some of the best bookkeeping software for small businesses!


This bookkeeping software is great for those who send out repeated invoices or need a time tracking feature. Freshbooks can easily be integrated with other business applications so that they can all be accessed from one place.

You are even able to see the location where your customers opened their invoices so that there is documented proof that it was received. Freshbooks has a mobile app that allows you to keep track of your bookkeeping information no matter where you are.

Sage 50cloud

Better for small to medium sized businesses, Sage 50cloud can send invoices, track in and outgoing transactions, and even calculate what you will owe at tax season.

These features are great for tax planning and maintaining your budget. With this bookkeeping software, you are unable to track time and it does not have collaboration tools.


For those that are always on the go, Xero is a great bookkeeping software. You can customize and send invoices, track your inventory, and create purchase orders all from your mobile device.

This convenient software can send financial reports to your device and easily connects to your bank account. One thing Xero doesn’t offer is live support, which can be inconvenient when troubleshooting.

Intuit QuickBooks

The great advantage that Intuit QuickBooks has is its ability to integrate with PayPal, Shopify, and Square, making it so much easier to track payments.

There are several different plans to choose from, but they all allow you to track your business income and expenses, send invoices, receive payments, run financial reports, and organize receipts. If you opt for a more advanced package, you can track time, inventory, and run payroll.

PL Consulting for all Your Financial Needs!

At PL Consulting, we consider our clients part of our team. We provide full financial management services including bookkeeping, accounting, payroll, tax management, budgeting, and more.

Serving the Baltimore area for several years, we are dedicated to providing customized service to fit each and every one of our client’s unique needs.

To book PL Consulting today or get more information, contact us at (410)-764-3731 or at

Bookkeeper vs. Accountant: Which One do You Need for Your Business?

One of the most important aspects of any business is finances. Without proper money management, a business can’t be successful. It is always an option to handle the financial aspect of your business on your own, however it can be a very complex and time consuming task.

There are several different types of financial professions that are designed to help your business prosper. Often times, people often consider bookkeeping and accounting one profession, however they are different and both are vital to your business success.

Here is the difference between a bookkeeper and an accountant so that you know the role each one plays for your business.

Technology’s Influence

With the new age of technology, the thin line between bookkeeping and accounting is disappearing slowly. There is now a variety of bookkeeping and accounting software that makes these tasks easier for professionals.

Majority of bookkeeping software includes financial statements and analysis, which further confuses the definition of the two professions.

A lot of financial companies are transitioning to using digital software and resources to complete these tasks, making them more efficient and creating an ease of access to all financial documents.

Although these two professions are starting to merge together with technology, there are still key differences that are important to know when running a business.


Compared to an accountant, a bookkeeper has a more active role in the day-to-day financial responsibilities of a business.

They take care of the elements that keep the business up and running, which include things like creating invoices, keeping track of billing, running payroll, and creating general ledgers to document all transactions.

The core skill focus of bookkeeping is data entry and coding. They must ensure that all financial data is correct and coded to the right accounts so that financial information is both accurate and easy to access.


Though accountants also deal with the ongoing finances of a business, the main difference is that they typically handle the finances that are already finalized and closed out.

Bookkeepers maintain current and active records of financial transactions, while accountants take those records and translate them. They interpret the financial data that the bookkeeper documents, compiling the information into financial reports.

These reports give businesses an idea of their financial progress and current standing. This helps to analyze the growth of a business and gauge any changes that may need to be made for improvement. Accountants also handle the tax portion of a business, providing tax planning and advice.

In short, an accountant and a bookkeeper complement one another in the financial world. They are both equally important to the success of any business.

Bookkeepers maintain an active record of all business transactions, while accountants interpret the records and act as financial advisors for businesses.

PL Consulting for all Your Financial Needs!

At PL Consulting, we consider our clients part of our team. We provide full financial management services including bookkeeping, accounting, payroll, tax management, budgeting, and more.

Serving the Baltimore area for several years, we are dedicated to providing customized service to fit each and every one of our client’s unique needs.

To book PL Consulting today or get more information, contact us at (410)-764-3731 or at


Why Your Small Business Needs a Bookkeeper

Bookkeeping is essential for any small business to thrive

Business owners are multi-talented, but they aren’t the masters of all trades. Therefore, it’s essential that a small business has different departments so that employees have a clear role. Some employees are excellent when it comes to sales and others perform well in regards to administrative tasks. But what about the bookkeeping?  Bookkeeping is essential for any small business to thrive. Therefore, you should hire an entrusted individual or top bookkeeping firm like PL Consulting to make life easier for you. It’s a component of a business’ upkeep that you shouldn’t neglect. Keep reading for some for the top reasons why you need a bookkeeper.

Continue reading “Why Your Small Business Needs a Bookkeeper”